The Colorado Auctioneer 1st Quarter 2010

ORADO COL

AUCTIONEERS AS

SOCIATION

Board of50Directors Years of

Excellence

President • Doug Carpenter, CAI, AARE 1610 Hwy 50 • Grand Junction, CO 81503 Phone: 970-245-1185 • Cell: 970-623-6999 doug@theauctionteam.com Vice President / Treasurer • Lance Nichols 38241 WCR 23 • Eaton, CO 80615 Phone: 970-686-2361 • Home: 970-686-2361 lanichols@thinairnet.com 2nd Vice President • Richard Schur 1042 West Baptist Road, #175 Colorado Springs, CO 80921 Phone: 866-290-2243 • Cell: 719-210-6230 rich@success-auctions.com Chairman of the Board • David Whitley 24 Oak Street • Eaton, CO 80615 Phone: 970-454-1010 • Fax: 970- 539-1269 david@whitleyauction.com

Directors John Schaffner 36470 County Road Z • Wray, CO 80758 Phone: 970-332-5196 jschaffner@plains.net Mike Heitmann 27275 Mid Jones Road • Calhan, CO 80808 Phone: 406-450-2051 • Fax: 719-683-7235 mhbar@earthlink.net Dax Gillium 4981 W. Tufts Avenue • Denver, CO 80236 Phone: 303-730-2623 dgillium@msn.com Dayton Roller 7500n York Street • Denver, CO 80229 Phone: 303-289-1600 dayton@rollerauction.com Courtney Ostblom 825 E. 6th Street • Loveland, CO 80537 Phone: 970-581-9079 courtneyostblom@hotmail.com Bill Neal 109 S. Sierra Madre St. • Colorado Springs, CO 80903 Phone: 719-632-6693 bill@rossauction.com Butch Haglestrom Buckhorn Auction Services P. O. Box 306 • Fort Lupton, Co 80621 (C) 303-827-5157 buckhornauctions@earthlink.net OJ Pratt Pacific Auction Companies 1270 Boston Avenue • Longmont, CO 80501 (O) 303-772-7676 (C) 303-598-8585 ojpratt@pacificauction.com

FIRST QUARTER • 2010

THE COLORADO

AUCTIONEER

The Quarterly Newsletter of the Colorado Auctioneers Association

From the President Doug Carpenter • CAA President Greetings CAA Members: As the newly elected President of your Association, I first want to thank each member for the confidence you have bestowed on me as you elected me to this position. I am humbled and honored to be serving you. It is with gratitude that I begin my year with you. I ask that you contact me with any questions, concerns or suggestions for your Association.

The 2010 CAA convention, held January 8-10 in Denver, was a very enjoyable time where members had the opportunity to listen to some great speakers who offered insight into helping us make our businesses better. Your Board of Directors is committed to continued quality educational opportunities for all members. Attendance was good at the convention and it is my hope that all members will see the benefit of attending the annual convention as well as other educational events throughout the year. Please mark your calendars for the 2011 CAA convention which will be held at the Crowne Plaza DIA (same location as this year) on January 7-9. Lance Nichols is already working on getting some great speakers.

The convention was filled with lots of activity. Along with the educational opportunities provided members participated in the advertising contest, bid calling competitions and the fun auction. I want to thank everyone who participated in the fun auction by bringing items to sell and purchasing items. The fun auction is our biggest fund raiser of the year and your participation was very much appreciated! You can read more about the 2010 convention in this newsletter.

During the Annual Business Meeting, members elected two new members to your Board - Butch Hagelstrom and OJ Pratt. John Schaffner and Mike Heitman were re-elected to a new term on the Board and Rich Schur as elected as your new 2nd Vice President. I want to thank David Whitley for his great service as President last year and look forward to serving with him as he continues on as Chairman of the Board. I am very excited about the Board you have elected to run the affairs of your Association. The Board met on February 1 for a planning day. It was a 7 ½ hour day that was filled with excellent ideas and vision for the Colorado Auctioneer’s Association. A business plan was developed with objectives, strategies and priorities. I want to thank Joe Calhoon for providing, at no cost, his new 1hour2plan (1hour2plan.com) to our Association. Let your Board members know that you appreciate them through a phone call, email or a note through the mail. They are going to do great things this year.

A couple of events I want to make you aware of are 1) Day at the Legislature, scheduled for April 16. You can read more about this event in this newsletter. OJ Pratt has put together this Day at the Legislature to coincide with National Auctioneer’s Day on April 17. We have contacted the Governor to sign a proclamation proclaiming April 17, 2010 as National Auctioneer’s Day here in Colorado and 2) Summer Educational Seminar and Picnic, scheduled for July 31. More details about this event will be forthcoming.

Again, I thank you for allowing me to serve you as your President this year.

Executive Director

Make it a great day! ❖

Kathy Humphries 15300 FM 1825, Bldg. B, Suite 116 • Pflugerville, TX 78660 Phone: 512-671-3637 • Fax: 512-671-3638 coaa@austin.rr.com

Doug Carpenter CAI, AARE President, Colorado Auctioneers Association

The Colorado Auctioneer

THANK YOU TO THE 2010 CONVENTION EXHIBITORS & SPONSORS Please Support the Sponsors who support CAA Antique Week - www.antiqueweek.com Auction Flex -www.auctionflex.com Auction Services -www.auctionservices.com AuctionPay - www.greating giving.com AuctionZip - www.auctionzip.com Chase Bank - www.chasebank.com ColePromo, Inc. - www.colepromo.com Fence Post - www.thefencepost.com Global Auction Guide - www.globalauctionguide.com High Plains Journal - www.hpj.com KSIR Farm Radio - www.ksir.com Mile Saver Shopper - www.milesaver.com Print Works - goprintworks.com Proxibid -www.proxibid.com ScreamGraphics - www.screamgraphics.com Vihn.Net - www.vihn.net World Wide College of Auctioneering www.worldwidecollegeofauctioneering.com 1-800-The Sign - www.1800thesign.com

Dayton Roller talks with Jeff of Scream Graphics

The Colorado Auctioneer is designed and printed by S C R E A M G R A P H I C S

•

970-201-3031

ORADO COL

AUCTIONEERS AS

SOCIATION

50 The Colorado Auctioneer is published by the Colorado Auctioneers Association 1685 S. Colorado Blvd., Unit S-160 Denver, CO 80222 www.coloradoauctioneers.org Years of

Excellence

The Colorado Auctioneer Newsletter is published quartely, serving as a communication tool between association meetings.

Members are welcome to submit stories or ideas for future publications.

2

Please send your ideas to Dax Gillium • 303-730-2623 email: dgillium@msn.com or Bill Neal • 719-661-8228 email: bill@rossauctions.com

The Colorado Auctioneer

EVERRETT SCHNEIDER INDUCTED INTO THE CAA HALL OF FAME

By Lance Nichols • CAA Vice President

CONGRATULATIONS to Everrett Schneider, Rich Schur and Norm Silver

A large crowd of auctioneers and guests attended the Colorado Auctioneers Association Annual Convention, January 8-10, 2010 in Denver Colorado. At the convention, the organization bestowed its highest honor to one of its most well known auctioneers. The Hall of Fame, which has inducted 25 honored members since its inception, asked Everrett Schneider of Fort Collins, CO to join their ranks. This honor was bestowed upon Everrett at the annual Hall of Fame and Awards banquet.

WAY TO GO, GUYS!

The Colorado Auctioneers Association created the Hall of Fame in 1984 to honor individuals who have demonstrated honesty, high ethical standards, a willingness to share with others, a high standing in his or her community, and have made significant contributions to the auction profession, and The Association alike.

Postcards • Flyers • Brochures • Business Cards Presentation Folders • Calendars • Direct Mail Magnets • Posters • Letterhead • Envelopes Newsletters • Ad Design • Video Editing Web Design • DVDs • Promotional Items Apparel • Banners • Signs

Everrett brings a long list of accomplishments to the profession of auctioneering, and is one of the highest regarded business and estate auctioneers in Colorado. Everrett and his wife, Donna, began their auction business in 1988 working with Ernie (who is also a Colorado Auctioneers Association Hall of Fame Member) and Beverly Wimmer at WW Auctions & Real Estate, Inc. A short time later, the Wimmers retired, and Everett and Donna purchased WW Auctions & Real Estate, Inc. Everrett has earned a reputation as a leader in business liquidation auctions, antique and estate auctions, real estate, and benefit auctions.

But his heart is with the agricultural based auctions and feels “there is something very special about selling farm equipment.” This may go back to the fact he was raised on a farm in Western Nebraska, and he has concentrated his business efforts towards agricultural clientele

970.201.3031

j ef f @scre amgraph i cs. n et

Your Complete Auction Marketing Source

Des i g n • Pr i nt • Wow

S C R E A M G R A P H I C S 1610 Hw y 50 South • Grand Junction, CO 81503

and he has a great appreciation for the agricultural community.

Everrett is actively involved in the Colorado Auctioneer’s Association where he served as President in 1997, and was the State Bid Calling Champion in 2004.

No award more clearly defines the hard work associated with the life of an auctioneer than the coveted title as a Hall of Fame Member. “It is a great honor to be recognized by your peers, and a great time to visit memory lane,” said Schneider. At the banquet, Everrett showed his gratitude to his solid group of business associates and family members, including his wife Donna, their daughter Natalie, and his parents, Carl and Kathryn Schneider, of Bridgeport, NE. Also, Brad Cole, Ed Kuntz, Don Cook, Justin Story, and Crystal Dirkes were recognized with his thanks.

Everrett Schneider embodies the spirit of the Colorado Auctioneers Association Hall of Fame award. His demeanor, character, integrity, and professionalism are unparalleled and he is a true asset to both the community, and the organization. ❖

Chuck Bohn presents a plaque to 2010 CAA Hall of Fame inductee Everrett Schneider

3

The Colorado Auctioneer

COLORADO AUCTIONEERS ASSOCIATION: DO YOU KNOW WHAT YOU ARE MISSING?

By Pat Young • JCPB Estate Liquidators Dear Fellow Auctioneers, I am a third generation auctioneer and even though I have 29 years of auction experience, I didn’t really know about the Colorado Auctioneer Association and what it had to offer. I knew a lot of the people through my grandpa, who went to Auction School in Iowa. He graduated three days before I was born. My dad learned how to auctioneer from my grandpa, and I learned it from my dad. I actually still have the records my grandpa got from school to teach you how to auctioneer. I had been around auctions all my life, but did not know what I was missing.

My first year as a CAA member and my first time at the CAA convention was in 2009. The convention was an experience like no other. I did not know that there was an association that you could learn from and get more credentials behind your name to help grow your business. I knew there were schools, but did not realize there were associations to be part of. I joined after seeing the ad in the Fence Post encouraging the public to hire a CAA auctioneer. When I walked in the convention for the first time I was treated so well I felt like royalty. It was great how you get to the convention and people made me feel warm and fuzzy. Everyone approached me to introduce themselves if they didn’t know me. Steve Hunt was working with the newcomers last year. He gave us a paper to help us meet people and to introduce you to the hall of fame members. I didn’t even know there was a hall of fame until then. It’s amazing that this profession has such a tight knit group of people that makes new people feel welcome and important.

I learned a lot from the seminars during the conference, especially the voice care and the real estate. The biggest thing I got from the conference was ideas and information as I talked with other auctioneers. I knew several other auctioneers, but I didn’t really know them as people until the conference. As I talked with people, everyone was so eager to network and help with any questions I had. There are so many contests that help you showcase your talent and your company, as well as learn from others. I entered the First Timers Calling Contest and was very proud to have won the Troil Welton Award. I enjoyed meeting Dave Welton and visiting with him about his experiences with his dad and the meaning behind the award.

You learn a lot at the seminars, but you also learn from networking and the other businesses that come in and set up booths. My wife was looking in to designing her own software to run our business with until I went to the convention. I learned about the software that was ready made specifically for auctioneers. We now use AuctionFlex and it has made our operations so much better. I learned about all the education available to help you better your business through the NAA. I put my name in the hat last year and won the NAA membership for 1 year and have renewed my membership for this year. I am excited about what the NAA has to offer for education also. I plan on going to school through the NAA to add more credentials to my name. It is a great credit to you to be a part of an organization for your profession.

I also learned about the Associate Membership available for those people in the auction business that are not auctioneers. The CAA is

one organization that recognizes that there is more to the business than selling. They offer information for every aspect of the auction business, and sometimes the auctioneer is not the one to do all of the work. The Associate Membership is for those who support the auctioneer. I have brought in three more people on my staff to be members of the CAA; My dad and another auctioneer on my staff, as well as my wife as an associate member. I plan on having my entire staff be CAA members within the next year.

Everyone at the convention encourages you in everything you do, weather you succeed or not. This organization is not a dog-eat-dog organization like so many are. This is by far the best organization I have ever been a part of. If you have questions about something you are dong, the board is available throughout the year to help. Your fellow members are also there to help. You are not pushed away to find out the answer yourself. We all are competition to each other, but if someone has a question, somebody is there to listen and to help.

I learned so much in my first convention and during my first year as a member. In 2009 my business exploded around 7-10 times as much as my average years prior to becoming a member of the CAA and attending the convention. It was all because I learned what to do to improve my business and to do things the right way. I applied what I learned to my business plan and the results were mind blowing. I was doing some things the way I had learned to do them, but times change and the way you do business changes with them. The CAA is there to help you along the way, to keep up with the changes in the industry, and to help you do things right. This year looks to be an even bigger year for me. I am expanding in to more types of auctions and learning more every day.

At the 2010 convention I entered every contest I could to get more experience out of the convention. I entered in the championship bid calling contest. I didn’t make the top 5, but learned a lot and am excited to try again next year. I entered in all of the advertising divisions I could and came away with one award from them. I also came away with some great ideas to modify my advertising to make it better. For example, I entered my website knowing we needed to redesign it. With the information in the seminars, and looking at other websites in the competition, we have a new website that is becoming more effective than what we had. That’s the great thing about this association. We all learn from each other. We can use ideas from our competition and incorporate them into your own and nobody says anything about it. Everyone is there to help each other. I also ran for a position on the board this year so I could be more involved with the CAA and help other auctioneers the way I have been helped. I did not get voted in, but intend to run again next year. I am very excited about being a part of the CAA and want to be involved at every level possible.

I want to thank the CAA, the board members, David Whitley, Rich Shur, and the other CAA members for making me feel welcome in 2009, and even more welcome in 2010. The conventions are a wonderful asset to your business. I will be at every convention so I can learn more and continue to better myself and my business. I also plan to have everyone on my staff be a member of the CAA, whether as a full member or an associate member. ❖

5

The Colorado Auctioneer

TECHNOLOGY FAQ - EMAIL ETIQUETTE Reprinted with permission from John Bradshaw

(1) the recipient knows that you have sent the same message to a large number of recipients, and

There are many etiquette guides and many different etiquette rules.

Some rules will differ according to the nature of your business and the corporate culture. Below we list what we consider as the 32 most important email etiquette rules that apply to nearly all companies.

(2) you are publicizing someone else’s email address without their permission. One way to get round this is to place all addresses in the Bcc: field.

ENetSolutions LLC

32 most important email etiquette tips: 1. Be concise and to the point 2. Answer all questions, and pre-empt further questions 3. Use proper spelling, grammar & punctuation 4. Make it personal 5. Use templates for frequently used responses 6. Answer swiftly 7. Do not attach unnecessary files 8. Use proper structure & layout 9. Do not overuse the high priority option 10. Do not write in CAPITALS 11. Don’t leave out the message thread 12. Add disclaimers to your emails 13. Read the email before you send it 14. Do not overuse Reply to All 15. Mailings > use the bcc: field or do a mail merge 16. Take care with abbreviations and emoticons 17. Be careful with formatting 18. Take care with rich text and HTML messages 19. Do not forward chain letters 20. Do not request delivery and read receipts 21. Do not ask to recall a message.

22. Do not copy a message or attachment without permission 23. Do not use email to discuss confidential information 24. Use a meaningful subject 25. Use active instead of passive 26. Avoid using URGENT and IMPORTANT 27. Avoid long sentences 28. Don’t send or forward emails containing libelous, defamatory, offensive, racist or obscene remarks 29. Don’t forward virus hoaxes and chain letters 30. Keep your language gender neutral 31. Don’t reply to spam 32. Use cc: field sparingly Below is one great tip - (15) Mailings - use the Bcc: field or do a mail merge.

When sending an email mailing, some people place all the email addresses in the “To” field. There are two drawbacks to this practice:

6

However, the recipient will only see the address from the “To” field in their email, so if this was empty, the To: field will be blank and this might look like spamming. You could include the mailing list email address in the To: field, or even better, if you have Microsoft Outlook and Word you can do a mail merge and create one message for each recipient. A mail merge also allows you to use fields in the message so that you can for instance address each recipient personally. For more information on how to do a Word mail merge, consult the Help in Word. ❖

Partridge Auction Services Walt Partridge 2005 Colorado Champion Auctioneer Over 15 years experience as a Contract Auctioneer

Phone: 303-881-2632 • Fax: 303-840-2058 partridgeauctions@execucenter.net

The Colorado Auctioneer

RICH SCHUR TAKES HOME 2010 CAA BID CALLING CHAMPIONSHIP

By Dax Gillium A perennial highlight of the event is the Colorado Bid Calling Championship, which was held Friday, January 8th before a crowd of about 125 CAA members and the general public. Starting with a field of twelve contenders, the contestants were narrowed to five finalists by a panel of judges comprised of auction professionals. The five were then sequestered, then brought before the crowd one by one to answer three interview questions. The questions put to the contestants were identical for each contestant.

After the interview portion of the contest, the finalists were each given three similar items to sell to the crowd. After the final tabulation, Rich Schur of Monument, CO, was determined to be the 2010 State Champion Auctioneer. Schur, who works as the chief operations officer at Schur Success Auction Services, will represent the CAA while attending the National Auctioneers Association annual convention this coming July, where he will compete in the International Auctioneers Championship competition.

The runner-up or “reserve champion” was Dayton Roller of Denver-based Roller Auctioneers. Other finalists included Adam Kevil, Kevin Rutter and Harley Troyer, Sr. ❖

World Wide College of Since 1933 Auctioneering Mason City, Iowa

2010

Auction School Dates

February 13-21 June 12-20 September 11-19 (Held in Denver, Colorado)

Do You Know Someone Who Wishes to Become An Auctioneer?

Come to World Wide

“Come Train with the Champions.”

We’ll make them auctioneers

“I Guarantee it” Paul C. Behr, President

8

75 Years 35,000 Auctioneers

Call 1-800-423-5242 for FREE information www.worldwidecollegeofauctioneering.com

The Colorado Auctioneer

2010 COLORADO AUCTIONEERS ASSOCIATION CONVENTION WRAP-UP

By Dax Gillium

Convention Education Program Deemed Outstanding by Convention Attendees Attendees had many choices as to what sessions to attend. Options included “Selling Guns at Auction” presented by ATF representative Dennis Brillhart; “Bid Calling” which was presented in several segments by current IAC Champion Kevin Borger with the assistance at times of fellow IAC Champion and CAA Hall of Fame member John Korrey. Professional voice-over artist and actor Hilary Blair presented a session on “Voice Care”; Chris Longly, Deputy Executive Director of the National Auctioneers Association presented “Media Relations 101” and NAA Vice President Christy King imparted her wisdom on “Maximizing the Benefit Auction.” Other topics covered included “Auction Contracts and Working With the Public Administrator” by attorney Charles F. Reams; “Using Google Analytics and Craig’s List” and “Technology of Online Only Auctions, Real Estate and Non-Real Estate” were presented by NAA Director Robert Mayo, who is also co-chair of the NAA’s Technology Committee. “Posting Your Auction Online” was presented by Steve Johnson of the firm AuctionZip and CAA President David Whitley; internet marketing specialist Steve Silknitter presented “Search Engine Optomization/Marketing” and a Discussion on “License Law” was paneled by Christy King and CAA member Gary Corbett. The panel was moderated by Chris Longly.

The final day of the convention, Sunday, January 10th, began with an informal worship service. Kevin Borger, who is also an associate pastor at the First Church of the Nazarene in Hutchinson, KS, led the worship service. Music was provided by CAA Board of Directors member and pianist Dax Gillium, and Fellow CAA Board member Courtney Ostblom, who led the attendees in song. ❖

AA Awards 2nd Annual Scholarship Larkin Gatlin is the winner of the $500 scholarship. Larkin Gatlin is the daughter of CAA member Mike Gatlin of Pueblo West, CO. The younger Gatlin was awarded the scholarship over other applicants based on her background, school grades and rank in class, test scores, extracurricular activities and community involvement plus recommendations from teachers and others. The scholarship is awarded annually and winners are not limited to seeking a position in the auction industry. ❖

Norm Silver Wins “Troil Welton Award” Another annual favorite… the CAA First-Timer’s Competition was held on Saturday, January 9th. The First-Timer’s Competition invites those auctioneers who are new to the business, and to the CAA, to compete against each other for a trophy. There were 14 contestants in this year’s contest. Much like the Championship contest, each “first-timer” is given three items to sell to a crowd made up of CAA members and the general public. The contestants are then judged on their auctioneering and selling skills by a panel of auction professionals. This year’s winner is Norm Silver of Castle Rock, CO. Silver was presented with the “Troil Welton Award” at a Sunday awards banquet. Following the Saturday competition, The CAA held its annual “Fun Auction”, the organization’s major fund-raising event of the year. Items sold at the auction are donated by members and business sponsors. ❖

2010 CAA Advertising Contest Winners Real Estate (Four Color) The Auction Team • Grand Junction Real Estate (Two Color) Harley D. Troyer • Ft. Lupton Farm & Ranch (Four Color) Korrey Auctions • Iliff Commercial – Industrial (Four Color) The Auction Team • Grand Junction Commercial – Industrial (Two Color) Roller Auctioneers • Denver, CO Antique & Collectibles (Four Color) JCPB Estate Liquidators • Loveland Fundraiser Rocky Mountain Estate Brokers • Ft. Collins Business Promotions Schur Success Auction Services • Colorado Springs Company Promotional Items Schur Success Auction Services • Colorado Springs Web Site Schur Success Auction Services • Colorado Springs

9

The Colorado Auctioneer

TO BID, OR NOT TO BID

By Steve Proffitt • JP King

10

“Mr. Proffitt, what do you think about an auctioneer, his staff, and relatives bidding on the items offered during an auction? It makes me and plenty others very unhappy.”

The best education I’ve ever had on auctions has come from the mail that readers send in response to my columns. I annually receive hundreds of letters and emails from folks on the other side of the auction block and this is a surefire way to learn what they think about auctions and auctioneers. The opening paragraph of this column was excerpted from such a letter.

The practice of auctioneers bidding (including their staffs and relatives) in their auctions rankles the public. Auction-goers strongly dislike the practice and it’s one of the most frequent complaints I receive.

Whenever an auctioneer, staff member, or relative bids, someone in the crowd is going to be upset.

Perception There are two primary reasons auction-goers feel this way.

First, many bidders believe that an auctioneer who bids against them does so simply to run the price up. They see the auctioneer using his own bids as a ruse to make the lots more expensive for them to purchase.

Second, when an auctioneer, staff member, or relative actually buys something, bidders object on the ground that their chance to buy for a bargain was taken away. They see the auctioneer who bids against them as their competitor and they’re right. That’s what an auctioneer becomes when he bids against the crowd.

If a store advertised a great sale on televisions and you wanted one and made the trip to buy it, you would probably be pretty unhappy if the store manager stepped in front of you and claimed the last one himself. When an auctioneer bids, the result is the same – the next-high bidder will likely feel cheated out of the bargain she came to purchase. This could become a public-relations problem for the auctioneer.

Legality There are also several points to consider on the legal side of the coin.

First, the laws of the states differ on whether auctioneers may bid in the sales they conduct. Some jurisdictions prohibit the practice.

Others permit it so long as the auctioneer bids with a good-faith intention to buy.

Second, the sad fact is that auctioneer bidding is sometimes done for the purpose of artificially inflating bid prices. This occurs when an auctioneer bids with no bona fide intention to buy the lot. His purpose is to force the highest bidder into paying more money than legitimate, competitive bidding would require. This is not only unethical it’s fraud.

This leads to one of the biggest problems with auctioneer bidding, even when it’s done in good faith. How does the public know whether the auctioneer is genuinely bidding to buy, or just trying to escalate prices? It’s easy for a disappointed bidder or a “pushed” buyer to conclude that it’s the latter.

Third, yet another issue that comes into play with auctioneer bidding is manipulation. This is the ability of the person controlling the lots to determine the moment of offering as well as the introduction and description that a lot will be given.

Auctioneers can obviously control when the lots are offered. Likewise, ground workers frequently have the ability to determine the order in

which lots come to the block. An unscrupulous person can hold a desirable item back until the crowd is thin and the money largely gone. If a desirable piece is put up then, it will almost certainly sell for less than it would have brought in the heat of the auction. If the person making the decision on the selling order ends up purchasing the lot at a sweet bargain, the conclusion others (including the seller) will draw is obvious.

Likewise, when a lot is only partially, or even incorrectly, described at the time of offering, the same result can occur – a lower selling price.

Does a piece of pottery bring more money when it’s described as “a planter,” or as “a beautiful piece of old Roseville?”

When people working at auctions do things like this for their own gain, it’s dishonest and wrong. This is because their gain comes at the seller’s expense. Remember, the auctioneer is an agent for the seller and owes the seller a far-reaching fiduciary duty to advance and protect the seller’s interests.

Even “good” people can be lured into poor practices like this simply through the pull of self-interest. This is why a body of law exists to deal with the issues that come out of the “insider dealing” people do for self gain, whether it’s an estate settlement, asset liquidation, securities sale, or auction.

Perception In the law, we often speak of the appearance of impropriety. This becomes an issue when something looks bad, even if it’s not.

Canons of ethical conduct prescribe that acts should generally be avoided when they might appear improper to others. Sometimes auctioneer bidding falls under this umbrella of just looking bad.

Auctioneers need to be ever mindful that the public is much against this practice and distrusting of it. Public mistrust readily “sees” the appearance of impropriety, even where none exists, because perception often trumps reality.

Practice Suggestion Here are four suggestions for auctioneers who want to bid, or allow their staffs or relatives to bid, in their auctions.

First, never bid if the law of the jurisdiction prohibits it.

Second, always make full and clear disclosure to the crowd that you, your staff, and relatives may bid during the sale. Full disclosure cures many ills.

Third, always give the audience more than reasonable opportunity to win the bid.

Fourth, don’t ask the crowd if anyone objects to this bidding and then rely on the inevitable silence as an endorsement. Many people who do object won’t say so publicly.

If you have the nerve, place a comment box in a remote location at each auction and ask attendees for their written comments. If your “mail” is anything like mine, you’ll hear that some people strongly dislike “insider” bidding.

Steve Proffitt is general counsel of J. P. King Auction Company, Inc. (www.jpking.com) in Gadsden, AL. He is also an auctioneer and instructor at both Reppert School of Auctioneering in Auburn, IN and Mendenhall School of Auctioneering in High Point, NC. This information does not represent legal advice or the formation of an attorney-client relationship and readers should seek the advice of their own attorneys on all legal issues. Mr. Proffitt may be contacted by email at sproffitt@jpking.com. ❖

The Colorado Auctioneer

WELCOME

WELCOME TO OUR NEW CAA MEMBERS! Terry Ashcraft Ashcraft Auction Service P.O. Box 1210 Limon, CO 80828 719-740-2537 ashcraft@inbox.com Kevin Borger Kevin Borger Auctioneers 304 Kisiwa Parkway Hutchinson, KS 67502 620-704-6606 kborger@sbcglobal.net Terry Harrington Harrington Real Estate 1199 Huebinger Drive Glenwood Springs, CO 81601 970-945-7704 tharrinton@clre.com Steve Johnson Auction Zip 105 S. Richard Street Ste. B Beckford, PA 15522 814-623-5054 steve@auctionzip.com Ken Kincaide Ok Auction LLC 410 1740 Road Delta, CO 81416 970-874-8510 okauction@montrose.net Christie King C King Benefit Auctions, LLC 1204 Walker Drive Glencoe, AL 35905 256-390-0085 cking@ckingbenefits.com

Grant Ledall JCPB Estate Liquidators 325 Albion Way Fort Collins, CO 80526 970-324-3392 Chris Longly National Auctioneers Association 8880 Ballentine Overland Park, KS 66214 913-541-8084 ext. 31 clongly@auctioneers.org Robert Mayo Mayo Auction & Realty 8253 Wornall Road Kansas City, MO 64114 816-699-9883 robert@auctionbymayo.com Charles Reams Reams & Eggert Law Firm 660 White Avenue Grand Junction, CO 81501 970-242-7847 cfreams@qwestoffice.net

Tim Seay A. J. Karas Auctioneers HCR 74 Box 24704 El Prado, NM 87529 575-770-0136 realestatepro@newmex.com Steve Silknitter Locate My Real Estate.com 9721 Castle Ridge Circle Highland Ranch, CO 80129 303-521-7998 ssilknitter@locatemyrealestate.com Warren Smith Two for the Show Auctions, LLC 1464 S. Eudora Street Denver, CO 80222 303-456-1445 wt31smith@msn.com Brady Stagner A & B Auction Services 15004 County Road 20 Sanford, CO 81151 719-588-2573

Geffery Richards Rockin’ Rafter Auction Co. 2840 Spring Place Parker, CO 80138 303-627-4357 geffrichards@comcast.net

Crystal Young JCPB Estate Liquidators 1452 S. County Road 7 Loveland, CO 80537 970-215-4718 debauctioinauction@aol.com

Willy Seaworth Seaworth & Associates Auctioneers 2305 N. Taft Hill Road Fort Collins, CO 80524 970-482-8469 seaworth@mac.com

Pat Young, Sr. JCPB Estate Liquidators 1701 W. Trilby Road Fort Collins, CO 80526 970-226-6431 mudhillmules@skybeam.com

AN INVITATION TO THE STATE CAPITAL ON NATIONAL AUCTIONEERS DAY

By OJ Pratt • CAA Legislative Committee

April 17, 2010 is National Auctioneers Day! We have requested a proclamation be signed by Governor Ritter. In honor of National Auctioneers Day we have been invited once again by State Representative Corey Gardner to the State Capitol on Friday April 16 at 8:30 am. All members of the CAA are invited to attend the event. Our organization will be honored and announced on the floor of the legislature. If you would like to attend, mark your calendar now and more details will follow. ❖

11

A LOOK AT THE 2010 CAA CONVENTION

12

13

The Colorado Auctioneer

2010 COLORADO AUCTIONEERS ASSOCIATION LEADERSHIP ELECTED 45 CAA members attended the annual CAA Annual Meeting. Newly elected board members include Butch Hagelstrom of Ft. Lupton and O.J. Pratt of Longmont. Re-elected board members included Mike Heitmann of Calhan and John Schaffner of Wray. All will serve a two-year term. Director Rich Schur of Monument was elected to a one-year term as 2nd vice president; Eaton’s Lance Nichols was elected to a one year term as 1st vice president and former 1st vice president Doug Carpenter of Grand Junction was elected president of the association. Former president David Whitley of Ft. Collins now succeeds fellow former president Walt Partridge as Chairman of the Board.

During the meeting, members voiced their opposition to a new association logo as presented by the Board of Directors. It was decided that the logo would be subject to suggestions from the membership for at least 60 days, and that the logo could be viewed and input from the public gathered on a separate web page on the internet.

Members also voted to adopt a position statement from the National Auctioneers Association regarding the definition and use of the word “absolute” as it pertains to the auction method of marketing. ❖

Colorado’s Only Farm Radio Station

www.ksir.com • 867-7271 www.ksir.com 1-888-556-5747

14

ORADO COL

AUCTIONEERS AS

SOCIATION

Colorado Auctioneers Association 1685 S. Colorado Blvd., Unit S-160 Denver, CO 80222 www.coloradoauctioneers.org

50 MEMBERSHIP RENEWAL FORM 2010

Years of

Excellence

Name:_____________________________________________________________________________________ Company: __________________________________________________________________________________ Address: ___________________________________________________________________________________ City: _________________________________________ State: ___________________Zip __________________ Main Telephone Number:_______________________________________________________________________ Email: _____________________________________________________________________________________ Web Site: __________________________________________________________________________________ PLEASE CIRCLE THE FOLLOWING AUCTIONS THAT YOU SPECIALIZE IN Personal Property: 01 All Selections 02 Antiques 03 Art 04 Charity Auctions/Fund Raisers 05 Coins/Stamps 06 Collectibles 07 Collector Cars 08 Dolls

09 Estate/Household 10 Firearms 11 Furs 12 Galleries/Consignment 13 Jewelry 14 Toys Agriculture/Business: 15 All Selections 16 Exotic Animals

17 Farm Equipment 18 Farm Liquidations 19 Livestock Commercial/Industrial: 20 All Selections 21 Aircraft 22 Automobiles 23 Business Liquidations.

24 Commercial/Heavy Equipment

25 Manufacturing/Inventories 26 Marine 27 Restaurant Equipment Real Estate: 28 All Selections 29 Commercial 30 Residential 31 Farm 32 Developmental Properties

Payment Information

Membership year is based on a calendar year: January 1—December 31 Regular Membership Dues Are: $75 • Associate Membership Dues Are: $35 Auction Posting Service Fee: $75 (Annual Fee)

CAA OFFICE ONLY: DATE RENEWED

p Enclosed is a check # _________ in the amount of $___________payable to CAA.

Pay by Credit Card (indicate type) pAMEX pVISA pMC pDiscover Card Number: ____________________________________________ Exp. Date: ___________ Name on Card: _______________________________________________________________ Address of Card Holder: ________________________________________________________ Signature: ___________________________________________________________________ PLEASE COMPLETE THIS FORM AND RETURN WITH PAYMENT TO: CAA, 1685 SOUTH COLORADO BLVD, UNIT S # 160, DENVER, CO 80222 Forms may also be faxed to: 512-671-3638 or emailed to COAA@ATT.NET QUESTIONS? CALL CAA HEADQUARTERS: 512-671-3637

Thank you for renewing your CAA Membership, we appreciate your continued support!

ORADO COL

AUCTIONEERS AS

SOCIATION

Years of

50

Excellence

Colorado Auctioneers Association 1685 S. Colorado Blvd., Unit S-160 Denver, CO 80222

www.coloradoauctioneers.org Mission: The Colorado Auctioneers Association (CAA) promotes the auction method of marketing to all buyers and sellers through continued professionalism, education, and experience.

Calendar of Events

Vision: The Colorado Auctioneers Association will consist of a trusted and experienced organization of professional auctioneers that promote the auction method of marketing as a practical and enjoyable first choice of selling property.(real or personal property)

CAA Summer Meeting - July 24, 2010

CAA Board Meeting & CAA Legislative Date at the Capitol April 16, 2010 NAA Auctioneer Day - April 17, 2010

CAA Convention - January 7- 9, 2011 - Crown Plaza DIA - Denver NAA Convention - July 13-17, 2010 Sheraton Greensboro Hotel at Four Seasons -Greensboro, NC